Exxon-led group ends talks with Guyana over shallow water oil block, government says
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The Exxon Mobil-led (NYSE:XOM) consortium has pulled out of talks with Guyana’s government on terms for exploring and developing a shallow-water oil block, the country’s vice president said Thursday.
The group, which also includes Hess (HES) and China’s Cnooc (OTCPK:CEOHF), won offshore Block S8 in a bidding round launched in late 2022, and had been in negotiations this year for the non-fiscal terms of the project.
Exxon (XOM) “wanted to use the area for carbon capture and storage, and we don’t want to do that at this stage,” Guyana Vice President Bharrat Jagdeo said, according to Reuters.
Earlier this week, neighbor Suriname said Exxon (XOM) had withdrawn from an offshore block that was one of the country’s most promising oil and gas projects, leaving the area entirely to operator Petronas.